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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: NY Stew who wrote (14596)	9/8/2000 7:55:45 AM
From: Ausdauer	Respond to of 60323

Stew, I agree with you that Lexar's intentions are transparent. SanDisk has replied to the claims here... siliconinvestor.com I always listen to what Eli says. He usually doesn't state anything publicly unless he is confident in his position. The following statements reflect this confidence... _______________________________________________________________________________ Eli Harari, president and CEO of SanDisk, called the suit, "A desperation move by Lexar to buttress its weak position in the pending litigation between SanDisk and Lexar before the U.S. District Court in San Francisco." He referred to a court order already obtained by SanDisk which holds that all of Lexar's current CompactFlash and PC cards contributorily infringe on a SanDisk patent (U.S. Patent No. 5,602,987). Harari strongly stressed that Lexar's allegations are completely unfounded. SanDisk also pointed out that the SmartMedia cards, readers and drivers referred to in Lexar's complaint are purchased by SanDisk from third parties, who design and manufacture the products. SanDisk's lawsuit against Lexar is scheduled to go to trial on Oct. 23, 2000 before the U.S. District Court in San Francisco. Having already proven infringement, SanDisk is seeking damages for willful infringement, the recovery of its legal expenses, plus a permanent injunction against Lexar's sales of their current CompactFlash and PC card products. Should SanDisk win its lawsuit, Lexar would be required to cease the sale of its current CompactFlash and PC card products and develop redesigned products that avoid infringement of the '987 patent. Harari noted that "SanDisk has all along held that the innovations of SanDisk's '987 patent teach precisely those critical elements of high performance and high reliability, and we welcome an outcome of the current '987 litigation which would result in Lexar's redesign of its CompactFlash and PC card products." _______________________________________________________________________________ Lexar Media is in a dire situation. I suspect insiders will do anything to try to prop up the stock before selling off portions of their position after the waiting period. Reimer's actions to date suggest he would resort to almost any tactic to buttress the stock price. Once the waiting period is complete I believe the Lexar stock price will plummet like a rock. In an efficient market the stock would never have reached $15.00/share and yesterday's feeble announcement would have repercussions today. Aus